SC extends court closures in ECQ and MECQ areas to May 14

April 30, 2021 | 7:46 pm

The Supreme Court (SC) has extended the physical closure of all courts and court offices in the National Capital Region, Abra, Bulacan, Cavite, Laguna, Quirino, Rizal, Santiago City in Isabela, and in other areas currently under enhanced community quarantine (ECQ) and modified enhanced community quarantine (MECQ) until May 14.

“These courts in ECQ and MECQ areas shall continue to operate during this period (May 3 to 14) through fully remote videoconferencing, which must be maximized so as not to delay the trial of cases and court processes,” the High Court said in a circular released on Friday.

Courts in those areas may still be reached through their respective hotlines and e-mail addresses as posted on the SC website as the said courts and court offices will still maintain a skeleton staff to attend to urgent matters.

The filing periods and service of pleadings and motions are also suspended and will resume on the seventh calendar day from the opening of the relevant court.

Meanwhile, the Court said courts and court offices in areas placed under general community quarantine (GCQ) and modified general community quarantine (MGCQ) will be open and shall operate “with a workforce of at least 25%.” — Bianca Angelica D. Añago

Health agencies ink anti-corruption agreement

April 30, 2021 | 7:39 pm

https://pacc.gov.ph/

The Presidential Anti-Corruption Commission signed an agreement with government health agencies and corporations to boost efforts against corruption.

On Friday, the PACC signed a joint memorandum with the Department of Health (DoH) on a partnership that will strengthen efforts against graft within the DoH, the Food and Drug Administration (FDA), and the Philippine Health Insurance Corporation (PhilHealth). Those health agencies have long been the subjects of allegations of corruption and countless probes have been launched in this regard.

The pact is part of the PACC’s Project Kasangga which gathers the commitment of officials from all government agencies to reduce graft and corruption in their departments while also agreeing to cooperate in speedy investigations and prosecution.

PACC Commissioner Greco B. Belgica said during the event on Friday that boosting efforts to combat corruption is needed. “Most especially at this time that our society is more vulnerable to corruption due to the ongoing health and economic crisis,” he said.

Health Secretary Francisco T. Duque III said that the health department is one with the PACC and its initiatives to abolish all forms of corrupt activity within the DoH and other government agencies.

“Napakahalaga magamit ng tama ang pondo ng gobyerno upang tumugon ang pangangailangang kalusugan ng ating mga kababayan (It is extremely important to appropriately use government funds to address the health needs of our countrymen),” he said.

Meanwhile, Philhealth CEO Dante A. Gierran said that the task will not be easy within his agency, which has long been the subject of speculation and allegations of widespread anomalies before he was appointed by President Rodrigo R. Duterte to cleanse the agency.

“It is not an easy task, but with the Filipino people in mind for inspiration, anti-corruption and bureaucracy is worth it… Kami sa Philhealth ay nagpapatupad ng anti-fraud measures na puso

ng (We in Philhealth have implemented anti-fraud measures that is the heart of the) national health insurance program,” he said. — Gillian M. Cortez

BSP sees inflation breaching target anew in April

April 30, 2021 | 6:52 pm

Inflationshoppers_VARCAS_290321 — Photo by Michael Varcas, The Philippine Star

The Bangko Sentral ng Pilipinas (BSP) said inflation likely breached the upper-end of its annual target for a fourth straight month in April due to higher electricity rates and food prices.

Inflation during the month likely reached between 4.2% to 5%, BSP Governor Benjamin E. Diokno told reporters in a Viber message. This is above the 2-4% target of the central bank.

He said the BSP’s point inflation forecast for April is at 4.6%, which, if realized, will be faster than the 4.5% in March and the 2.2% a year earlier.

The April inflation data will be released by the Philippine Statistics Authority on May 5.

The increase in electricity rates of Manila Electric Co. as well as the higher prices of pork, fish, and rice may have led to faster inflation in April, Mr. Diokno said.

Meralco said households will likely see an increase of around P17 in their April electricity bill due to higher spot market prices. The utility firm said their overall rate rose by P0.087 per kilowatt-hour to P8.4067 per kilowatt-hour (kWh) from March.

A 60-day price cap on meat products in Metro Manila expired earlier this month. The price ceiling was implemented to curb soaring meat prices due to supply shortages caused by the African Swine Flu outbreak.

Meanwhile, the month also saw a decrease in oil prices as well as food items including fruits and vegetables as supply conditions improved. Mr. Diokno said these factors could slow down the increase in the consumer price index.

Global oil prices declined recently amid concerns a spike in coronavirus cases in some countries may affect global economic recovery.

In the domestic market, pump prices of gasoline, diesel, and kerosene have jumped by P7.60, P5.70 and P4.95 per liter, respectively, as of April 27 year to date.

“Moving forward, the BSP will continue to monitor evolving economic and financial conditions to ensure that the monetary policy stance remains consistent with the BSP’s price stability mandate,” Mr. Diokno said.

The Monetary Board’s next policy-setting meeting is scheduled on May 13.

The central bank kept the key policy rate at a record low of 2% on its March policy review, citing the need to continue to support the economy’s recovery amid a surge in new coronavirus cases.

Inflation is expected to reach 4.2% this year, much higher than the 2.6% in 2020 due to higher food prices and a recovery in global oil prices. — Luz Wendy T. Noble

Foreign loans to fund Philippines’ COVID-19 response hit $18.4 billion

April 30, 2021 | 6:49 pm

The Philippines secured more foreign loans to fund its pandemic response. — Photo by Michael Varcas, The Philippine Star

The Philippines has secured $18.4 billion in foreign loans so far to fund its fight against the coronavirus disease 2019 (COVID-19) pandemic, the Finance department said.

“As of April 28, 2021, nakautang po tayo ng a (we have secured loans) total of around $18.4 billion from external sources,” Undersecretary Mark Dennis Y.C. Joven said in a Laging Handa briefing on Friday.

Pressed for details, Mr. Joven said the government’s coffers were boosted by the recent issuance of the yen- and euro-denominated bonds.

The Bureau of the Treasury last week raised P122.4 billion (€2.1 billion) from its euro-denominated bonds that have tenors of four, 12 and 20 years.

This followed the P22.4 billion (¥55 billion) raised in March through the government’s issuance of yen-denominated bonds maturing in three years.

Mr. Joven said $16.6 billion will be for budget support while the remaining will be for project financing.

He said $6.93 billion came from multilateral sources such as the World Bank, Asian Development Bank, and Asian Infrastructure Investment Bank, while the rest came from bilateral sources ($1.32 billion) and corporate sources that bought government bonds ($8 billion).

“We purposely chose multilateral funders because the rates they offer are very concessional…Nominal rate is less than 1%, I think it’s around 0.6% to 0.8% per annum,” Mr. Joven said.

He also added the longer tenor of these loans helps, especially as the country continues to face a prolonged pandemic.

Economic managers expect the country’s debt stock to reach P11.98 trillion by the end of this year.

The government expects the deficit will hit 8.9% of the gross domestic product this year, but Finance Secretary Carlos G. Dominguez, III said they aim to bring this down to 3.5% to 4% starting in 2022. — Luz Wendy T. Noble

Domestic trade plunges in 2020

April 30, 2021 | 6:46 pm

forTRADE_PORT_MANILA_creditICTSI — A view of the Manila International Container Terminal (MICT) and the Manila skyline in this file photo. -- Courtesy of ICTSI

THE PHILIPPINE economy saw a decline in domestic trade activity in 2020, data by the Philippine Statistics Authority (PSA) showed.

The final results of PSA’s Domestic Trade Statistics in the Philippines released on Friday showed the total value of domestic trade declined by 29.2% to P590.66 billion last year from P834.72 billion a year earlier.

Similarly, the volume of domestic trade plunged by 37.3% to 16.23 million tons from 25.89 million tons previously.

Nine out of the 10 commodity categories monitored by the PSA reported a drop in trade value. Machinery and transport equipment — which accounted for the biggest share of trade in terms of value at 25.5%— fell 44.2% to P150.58 billion. Its trade volume also slipped by 37.4% to 1.59 million tons.

The biggest decline was observed in mineral fuels, lubricants and related materials, whose trade value decreased by 59% to P20.90 billion. In terms of volume, trade in that commodity group plummeted 81.2% to 741,826 tons.

Manufactured goods “classified chiefly by material” was the lone group that posted growth last year with 8.5% to P131.59 billion from P121.32 billion. This was despite a decline in trade volume by 47.5% to 2.89 million tons from 5.50 million tons.

Northern Mindanao was the top source of commodities in 2020, with outflows amounting to P111.64 billion. It had a domestic trade surplus of P52.11 billion.

Meanwhile, Central Visayas was the top destination of commodities with total inflows reaching P108.38 billion, posting a trade surplus of P2.01 billion.

‘Huge gap’ on vaccine access cramps Asia rebound, ADB chief says

April 30, 2021 | 6:41 pm

forvaccinestory15_VARCAS_060321 — Coronavirus vaccine roll-outs have been delayed throughout Southeast Asia, including the Philippines. -- Photo by Michael Varcas, The Philippine Star

A “huge gap” between demand and supply of vaccines is threatening the rebound across developing Asia, according to Asian Development Bank President Masatsugu Asakawa.
“We need to invest more in vaccine manufacturing companies in the region to expand the production function,” Asakawa said in the Bloomberg Television interview with Haslinda Amin.

The ADB has made progress in providing financing to help the vaccine production, Asakawa said. A $9 billion financing instrument approved in December — the Asia Pacific Vaccine Access Facility, or APVAX — has approved four constituencies for funding: Indonesia, Philippines, Afghanistan and South Pacific islands.

Delays in vaccine roll-outs across the region and the constant threat of virus resurgences top a list of “many, many downside risks,” he said. The ADB earlier this week boosted its economic outlook for developing Asia to 7.3% growth this year — better than its 6.8% December estimate — after a 0.2% contraction in 2020.

Growth will rebound this year on base effects but also led by the “two giants” of China and India, he said in the interview.

Asakawa also expressed concern about the accumulation of debt in the region, stemming from necessary stimulus to mitigate pandemic effects.

“The resulting accumulation of public debt, especially if it’s denominated in U.S. dollars, is our concern” since U.S. policy normalization could lead to significant capital outflows and currency shocks, he said.

Among other priorities for recovery spending, Asakawa noted a critical need to “invest in human beings” via health and education.

Green infrastructure is another ADB priority, with Asakawa citing a goal to provide $80 billion in climate financing between 2019 and 2030. Governments should also address the digital divide through enhanced broadband access, and look to expand tax policy to boost revenue in the region that has remained unusually low, particularly in Indonesia, he said. — Bloomberg

Higher metal prices drive Philex Mining’s Q1 profit surge

April 30, 2021 | 6:34 pm

Philex Mining Corp. reported a more than fivefold increase in profit in the first quarter, fueled by higher gold and copper prices in the global market.

The listed miner told the stock exchange its net income attributable to equity holders of the parent company surged to P559.57 million in the January to March period, from P102.3 million during the same period in 2020.

Core net income increased over five times to P540 million, as revenues rose 38% to P2.37 billion.

Philex Mining said realized gold prices hit $1,781 per ounce in the first quarter, up 11% from year ago levels. Realized copper prices stood at $3.95 per pound in the first quarter this year, 68% higher than a year ago.

“Gold was still on the upswing and maintained its status as a safe haven asset brought about by factors that included a transition in the US presidency, a weak dollar index, and increasing geopolitical tensions. Copper prices were still favorable and would eventually stabilize as the global economic recovery kicks in,” Philex Mining said.

From January to March, tonnage inched up 3% to 2.03 million tonnes, driving operating costs and expenses 6% higher to P1.647 billion.

Philex Mining produced a total of 13,413 ounces of gold, and 6.77 million pounds of copper as of end-March.

“The higher prices of gold and copper helped the Company maintain its uninterrupted operations despite the challenges brought about by the pandemic. God willing, the favorable gold and copper prices will continue up to the end of the year, as the pandemic is still with us and many more challenges may lie ahead,” Philex President and Chief Executive Officer Eulalio B. Austin Jr., said.

Meanwhile, Philex Mining’s subsidiary PXP Energy Corp. said its consolidated attributable net loss to equity holders of the parent stood at P4.3 million in the first quarter, less than the P32 million loss a year ago.

PXP Energy said its consolidated costs and expenses stood at P18 million, lower by 32.5% year on year since the firm did not recognize production costs in the service contract (SC) 14C-1 Galoc.

Shares of Philex Mining improved 7.09% or 45 centavos to close at P6.80 apiece, while shares of PXP Energy slipped 3.75% or 30 centavos to finish at P7.70 apiece on Friday.

Philex Mining is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Metro Pacific Investments Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

Gokongwei-led URC profit jumps 51% in first quarter

April 30, 2021 | 6:29 pm

Universal Robina Corp. (URC), maker of Jack ‘N Jill snacks and Great Taste coffee, started the year on bright note, with its first quarter net income rising over 50% on the back of higher operating income and a drop in foreign exchange losses.

In a regulatory filing, the Gokongwei-led listed company said its net income attributable to equity holders of the parent jumped 51.3% to P3 billion in the January to March period, from P1.98 billion a year ago.

“This performance was driven by growth in operating income, lower foreign exchange losses, controlled financing costs, and was further boosted by benefits from the Comprehensive Recovery and Tax Incentives for Enterprises (CREATE) Act,” URC said, referring to the law that reduces the corporate income tax rate to 25% starting July 2020.

Consolidated sale of goods and services went up 3.5% to P34.61 billion in the first quarter, as the recovery of its international units and growth in commodity division offset the drop in branded consumer foods in the domestic market.

Sales of branded consumer foods inched up by 1.3% to P25.73 billion, despite a 5% decline in domestic operations sales to P14.92 billion. URC noted last year’s sales from domestic operations had a high base “fueled by the initial pantry stock up with the Taal eruption and the start of the pandemic shifting household spending to pantry essentials.”

On the other hand, net sales from international operations jumped 11% to P10.8 billion, mainly due to foreign exchange appreciation, particularly in Australia and New Zealand.

URC said its agro-industrial and commodities divisions saw a 10% increase in sales to P8.5 billion, thanks to the 19% growth in the commodity foods group’s sales.

Meanwhile, the company reported a P152 million net foreign exchange loss, lower than the P820 million posted a year ago. This was mainly due to the lower devaluation of the Indonesia rupiah against the US dollar and the higher devaluation of the Philippine peso against the US dollar, compared to a year ago.

URC’s finance costs fell by 24.7% to P307 million for the first quarter of 2021, while finance revenue dropped by 60% to P43 million “due to lower dividend income and lower interest rates.”

“COVID-19 is still very much with us. In general, domestic sentiment remains muted, with many consumers still very cautious on spending. On the cost side, we face headwinds as commodity prices continue rising. Despite these challenges, we were able to gain market share, increase overall top line sales, and achieve good profit growth,” Irwin C. Lee, URC president and chief executive officer, said in a statement.

Shares in URC dipped 0.07% to close at P136.90 each.

PAL eyes non-stop flights to Israel

April 30, 2021 | 6:27 pm

2021-04-15_TELAVIV_ISRAEL — A girl wears an Israeli flag at a beach in Tel Aviv, Israel April 15, 2021. -- REUTERS/Corinna Kern

Flag carrier Philippine Airlines (PAL) is planning to mount non-stop flights between Manila and Tel Aviv, Israel by October.

The company is eyeing twice weekly nonstop flights to Tel Aviv’s Gurion international Airport using its Airbus A350 aircraft.

PAL President and Chief Operating Officer Gilbert F. Santa Maria has been in talks with Israel Ministry of Tourism Director General Amir Halevi on the possible Manila-Tel Aviv-Mania flights, the company said in a statement on Friday. Philippine passport holders can travel to Israel visa-free for up to 90-day visits.

“The Philippines is a strong source of potential travelers to Israel, which welcomes Filipinos without requiring a visa. Our countrymen have been longing for a direct flight to the Holy Land for spiritual pilgrimages or for a Mediterranean getaway when the travel climate allows,” PAL Chief Strategy and Planning Officer Dexter Lee said.

“We also look forward to inviting Israelis to visit the Philippines, so our direct flights will help us restart tourism here in our country.”

The Philippines on May 1 will lift its travel ban on foreign nationals, except for those travelling from India, where coronavirus disease 2019 (COVID-19) cases have surged. Metro Manila and nearby regions are still under a strict lockdown where tourism attractions are not allowed to open.

Israel, which has fully vaccinated more than half its population, is slowly opening up its borders to international tourists, starting with vaccinated tour groups next month.

“‘Once the global travel climate improves and restrictions are eased, the planned PAL service will enable Israeli tourists to fly nonstop to Manila and connect to the flag carrier’s domestic route network,” PAL said.

The company last week announced that it would test run an international travel pass mobile application that allows passengers to manage travel documents and share COVID-19 test results and vaccination status. — Jenina P. Ibañez

Filinvest group allots P21-B capex this year

April 30, 2021 | 6:25 pm

The Filinvest group is setting aside P21.2 billion in capital expenditures this year, the bulk of which will be used for its real estate projects.

“For this year, the group’s total combined capital expenditure budget amounts to P21.2 billion, of which about a quarter is slated for investments in new ventures including the eco-sustainable space. The balance is for the real estate business,” Filinvest Development Corp. (FDC) said on Friday.

This year’s capital budget is 32.5% higher than the adjusted capex of P16 billion in 2020.

FDC said the P15.9 billion or 75% of this year’s capex will go to its real estate business under Filinvest Land, Inc.

Around P3.2 billion will be used for the company’s power segment FDC Utilities, Inc., while P2.2 billion will be used for other businesses.

“We are in pursuit of like-minded partnerships that will bolster our financial muscle, deepen our management bench, and widen our technological expertise,” FDC President and Chief Executive Officer Lourdes Josephine Gotianun-Yap in a virtual briefing on Friday.

FDC unveiled its growth strategies of maximizing its “strong foundation,” creating an eco-sustainable platform and forming partnerships, and embracing digital transformation.

The Gotianun-led firm said it aligned its recovery plan with the UN (United Nations) Sustainable Development Goals (SDGs) to support its mission on focusing “the underserved markets.”

“We want to leverage on our strong foundation, our organization, and franchise, building scale to provide more employment through our ecosystem in key industries that are crucial to economic growth,” Ms. Gotianun-Yap said.

Banking segment EastWest Banking Corp. is planning to offer a wider range of customer services, which includes bancassurance and wealth management.

For its property subsidiaries, FDC said it will continue building its investment portfolio and monetizing its assets.

“In power, our objective is to maximize returns from the uncontracted capacity of our 405-megawatt circulating fluidized bed coal thermal plant,” Ms. Gotianun-Yap said.

The company’s Filinvest City is working on becoming a “Smart City” through a fiber network platform.

Some of its newest ventures include digital and innovation factory f(dev) and crowdfunding portal Investree Philippines. EastWest Bank also recently introduced its digital banking service Komo.

“As we bring FDC to new heights with these strategies, we recognize our ability to do well in business while doing good for society,” FDC Chairman Jonathan T. Gotianun said.

FDC shares at the stock exchange closed unchanged on Friday at P8.20 each. — Keren Concepcion G. Valmonte

Phoenix Petroleum to focus on retail, LPG businesses to drive growth

April 30, 2021 | 6:23 pm

Phoenix Petroleum Philippines Inc. said on Friday that it plans to focus on its retail and liquified petroleum gas (LPG) businesses to ramp up growth over the next five years.

“To drive our growth, we will focus on our higher margin, higher growth businesses like retail and LPG. For LPG, we will be focusing our investments on higher margin SKUs (stock keeping units)…particularly cylinders (for household use),” Henry Albert R. Fadullon, president and chief operating officer of Phoenix Petroleum, said during the company’s annual stockholders’ meeting on Friday.

He made the statement when asked how Phoenix Petroleum plans to sustain its growth in the next five years.

Mr. Fadullon said the company is also looking at leveraging its partnerships and joint ventures to fast-track its “capital-light” strategy, and continuing to grow its brand through franchising.

“More importantly, we will leverage on technology, particularly to drive our push into e-commerce, which will allow us to bring our offers closer, faster, easier to the customer,” he said.

Asked about first quarter financial performance, Mr. Fadullon said the company was “doing better” on a consolidated basis year-on-year since its overseas affiliates have been delivering a “very strong” performance.

He said April’s financial performance may be “very close to pre-COVID (levels), if not pre-COVID levels, already.”

Mr. Fadullon said the company is confident and hopeful, but cautious, as it will be “very selective” in embarking on new activities and in deploying its resources, particularly its capital and operating expenditures.

Phoenix Petroleum’s net income attributable to parents of the equity holder plunged 93% to P102 million in 2020, from P1.48 billion in 2019, as economic activity was hampered due to the pandemic.

Shares of Phoenix Petroleum edged up 0.98% or 12 centavos to close at P12.32 apiece on Friday. — A.Y.Yang

Cemex Philippines net income more than doubles in Q1

April 30, 2021 | 6:22 pm

Cemex Holdings Philippines, Inc. (CHP) booked a P205-million net income in the first three months of the year, 130% higher than the P89 million earned in the same period in 2020 on the back of lower financial expenses.

In a regulatory filing on Friday, the cement producer said expenses declined by 78% on lower debt levels and interest rates in the first quarter.

However, consolidated net sales slipped by 8% to P5.2 million, as volumes dropped and prices fell.

Domestic cement volumes declined by 4% year on year, as the construction activity for both residential and non-residential projects slowed amid the pandemic.

“CHP’s domestic cement prices remained flat quarter-on-quarter. Net of freight charges, CHP’s domestic cement prices during the first quarter decreased by 1% year-over-year due to subdued activity and competitive market dynamics,” the company said.

Meanwhile, earnings from public infrastructure projects increased in the first two months of the year to P107 billion as CHP received payments for projects started in late 2020.

CHP shares at the stock exchange slipped by 2.52% or three centavos to close at P1.16 each. — Keren Concepcion G. Valmonte